If you only had £15K left to pay off your mortgage and you won £15K, would you pay off your mortgage with it, invest it in a high interest account or go out and blow it on a new car or holiday?

Pay off the mortgage! At least then you know, it's paid and the house/flat/shed is yours and no-one elses!

I'd invest the 15k.

And how would you invest it?
If you are paying so much interest on your mortgage, you'd need to find a way to earn more interest than you pay out on the mortgage to make it worthwhile, surely? eg Your mortgage rate is 5.5%, most investment schemes only pay around 4%.....

Well, I wouldn't invest it with no banks thats for sure. I meant invest it in something worthwhile. Something that you can get a return on.

Originally posted by "Classic Rock"

And how would you invest it?
If you are paying so much interest on your mortgage, you'd need to find a way to earn more interest than you pay out on the mortgage to make it worthwhile, surely? eg Your mortgage rate is 5.5%, most investment schemes only pay around 4%.....

Or you could look at it as just being a bonus... i.e. since you'd have to pay the mortgage off whether you'd won the £15k or not, why bother looking at getting better interest? So sticking it in a box under your bed would be "worthwhile" in that case!

What worthwhile things can you get a return on? Buy a pallet load of DVDs from Safeway? :shock:

oh so it was you classic rock who won the Mortgage Payed for a year comp on this morning :lol:

On a party for us Forum users.

Invest it and keep working, otherwise if you blow it all in It wouldnt do you any good at all. Much more sensible to get some benefit out of it.

I won a bit of money on the lottery a few years ago. I took my family and my parents on holiday that was the last holiday I had with my dad as he died unexpectedly at 57. Enjoy money, share it with those you love.

Pay off your mortgage. If you owe 15k and pay it all off you will probably save yourself 3 times that amount over the lifetime of the mortgage. :D

What do you think of the idea of putting some of the money away for a rainy day, spending some of it, and paying off some of the mortgage?

Just go with your gut feel, it will always come through.
Oh and buy a tat DVD and Capo Di Monte from Safeway.

Originally posted by "mikey"

Just go with your gut feel, it will always come through.
Oh and buy a tat DVD and Capo Di Monte from Safeway.

Bless, you remembered.

I wonder if we spent the £15K on DVDs from Safeway, how many would work.... Sorry, we're going off the point here.

Back to the issue.....

Is it better to take chunks of money and pay off the mortgage, or invest the chunks? I'm just wondering if it's possible to get a higher rate of return on an investment than it is on the interest on the mortgage.

Originally posted by "Classic Rock"

I wonder if we spent the £15K on DVDs from Safeway, how many would work.... Sorry, we're going off the point here.

Back to the issue.....

Is it better to take chunks of money and pay off the mortgage, or invest the chunks? I'm just wondering if it's possible to get a higher rate of return on an investment than it is on the interest on the mortgage.
The only way you'll really get a decent return is to invest in Stocks and Shares. By doing this though, you run the risk of losing you money.

I personally would pay off the remainder of my mortgage!

I'm just wondering if it's possible to get a higher rate of return on an investment than it is on the interest on the mortgage.

No there isn't one other than taking a risk on the stock exchange or invest in a business venture.

I'd would pay off your mortgage and look forward to the extra money you wouldn't otherwise get each month.

For a rainy day, you could always remortgage your house.

If it's a one off and you've a steady income with some security blow it before you're too old to enjoy it. Nice car, stereo, holiday, home TV system, face lift, well in Africa, deposit on a new home for an immigrant, whatever.

You only live once, this isn't a dress rehearsal, blah blah.

Enjoy it now.